General Investing >> Money Manager Interviews >> May 20, 2014

Following Capital Structures Over Time to Extract Value

Kao, Michael
Michael Kao is CEO and Portfolio Manager at Akanthos Capital Management, LLC. Mr. Kao has devised and implemented investment strategies spanning multiple asset classes and markets since 1992. Prior to forming Akanthos Capital Management, LLC, in 2002, Mr. Kao worked at Canyon Capital Advisors, where he analyzed, devised and implemented trading strategies in convertible and capital structure arbitrage, merger arbitrage, standalone and option strategies, and firm-wide portfolio hedges using index options, interest rate instruments, currency options and commodity options. While at Canyon Capital Advisors, he co-founded and lead-managed the firm’s Arbitrage Strategies Group, and co-founded the Canyon Capital Arbitrage Fund, directing investments for just under $700 million of fund capital in various arbitrage strategies spanning convertible, capital structure and merger arbitrage. Mr. Kao began his investment career at the J. Aron Currencies and Commodities division of Goldman Sachs, engaging in index arbitrage, proprietary trading strategies in over 30 underlying future and options markets, and dynamically hedging and making markets in various commodity-linked derivatives. Mr. Kao is a graduate of the University of California at Berkeley with a B.S. in electrical engineering and computer Science, and the Wharton School of the University of Pennsylvania with an MBA in finance. Profile
TWST: Please begin with some highlights from your career, with a view to steps that led you to found Akanthos Capital Management.

Mr. Kao: My pre-Akanthos career was short but eventful,